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Federal Employees Used Government Credit Cards at Casinos

10 April 2002

WASHINGTON, D.C. – As reported by the Associated Press: "Interior Department employees used government-issued credit cards to pay their rent, withdraw money at casinos and buy jewelry and furniture, an audit found.

"Almost three-quarters of the department's 79,000 workers have government credit cards, and the agency's inspector general found myriad problems with use and oversight. Some 1,116 former Interior employees still had active charge card accounts, but the report found no evidence of activity on them.

"…Interior spokesman John Wright said Tuesday the department is working to solve the problems identified in the audit, which was completed in late December. Training has begun to help managers spot abuse, and those who fail to recognize it could face disciplinary action.

"…Governmentwide, 398,000 employees have permission to make business purchases on credit cards. Those transactions totaled $13.7 billion last year, according to the General Services Administration. GSA manages the government's credit card program, although direct oversight is up to individual departments.

"Another $4.7 billion was spent by 2.1 million federal employees with government-issued credit cards that can be used only for travel expenses, said Sue McIver, the GSA's director of services acquisition.

"…Auditors found cases where employees used cards to pay telephone bills and rent, to have their cars repaired and to buy household furnishings and jewelry. They also found instances where charge cards were used to get wire transfer cash advances in some cases thousands of dollars from casinos.

"…The agency now prohibits employees from receiving cash advances through wire transfers on their credit cards…"

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